New research has shown that 76% of customers will not hand over their data to a business unless it has a ‘proper loyalty scheme’.
A report by GI Insight suggests modern consumers are much more aware of the use of personal data by organisations and its value to them, with 64% of survey respondents saying they are happy for a company to hold and use a considerable amount of detail on their personal preferences and circumstances as long as it uses this information to send them “relevant and timely offers and communications”.
The report also shows that 87% of consumers say that a company having a good loyalty scheme has led them to continue buying from that brand over the last few years. 82% of consumers confirm “now that things are picking up” they will continue buying from businesses whose loyalty schemes have delivered value in recent years. 33% even switched purchasing from one brand to another in the last year because the company they moved to had a loyalty programme they liked.
Andy Wood, managing director of GI Insight, said: “In the age of Big Data and omni-channel customer engagement, a loyalty scheme is a highly sophisticated way of capturing customer data that also provides a built-in mechanism for applying the resulting insight in a logical and highly targeted way. Companies need to continuously collect fresh consumer data to provide value to their customers through well-timed promotions that reflect these consumers’ latest needs. A loyalty scheme does just that.”
